President Bola Ahmed Tinubu has approved a set of targeted, investment-linked fiscal incentives aimed at advancing the development of the Bonga South West deep-offshore oil project and unlocking similar ventures. The approval, granted during a meeting with a Shell delegation led by its Global Chief Executive Officer, Wael Sawan, is designed to expedite a Final Investment Decision on the major project while safeguarding government revenues.
President Tinubu emphasized that the incentives are disciplined and globally competitive, focused exclusively on attracting new capital and incremental production. “These incentives are not blanket concessions; they are ring-fenced and investment-linked, focused on new capital and incremental production, strong local content delivery, and in-country value addition,” the president stated. He set a clear expectation that the Bonga South West project must reach a Final Investment Decision within the first term of his administration.
The President directed his Special Adviser on Energy, Mrs. Olu Verheijen, to facilitate the formal gazetting of the incentives in line with Nigeria’s existing legal and fiscal frameworks. He described the project as strategic to the national economy, with the potential to generate thousands of direct and indirect jobs, deliver significant foreign-exchange inflows, and provide sustained government revenues over the project’s lifespan. The development is also expected to deepen Nigerian participation in offshore engineering, fabrication, logistics, and energy services.
Reaffirming his administration’s commitment to policy stability and regulatory certainty, President Tinubu noted these reforms are critical to restoring investor confidence and positioning Nigeria as a premier destination for large-scale energy investment. He highlighted that Shell and its partners have invested nearly seven billion US dollars in Nigeria over the past 13 months, particularly in the Bonga North and HI projects, as a clear sign that the country’s economic and energy-sector reforms are yielding positive results.
In his remarks, Shell’s Wael Sawan said Nigeria’s investment climate has improved remarkably under the Tinubu administration, adding that the company is growing increasingly confident in Nigeria as a destination for long-term investment. The Shell delegation included senior executives from the company’s global and Nigerian leadership teams.
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